The popularity of cash loans is certainly due to their easy availability. Unlike a mortgage, it does not require collateral. The number of formalities necessary to complete when applying for a cash loan is kept to a minimum. Unless the problem is taking out a cash loan, the problem is choosing the best offer.
It must be admitted, however, that just a few years ago getting a cash loan was even easier. Everything changed due to the guidelines of the Financial Supervision Authority. Banks are obliged to strictly comply with recommendations issued. As a result of changes and introduction of more restrictive rules for granting cash loans, the road to this form of financing was closed for many applicants.
Who has the chance for a cash loan?
Limited access to cash loans is available to people with bad credit history in BIK who do not have a stable source of income. Preferential conditions can be counted on those who paid their current liabilities regularly, have an employment contract, work contract and even pensioners. When deciding to take out a cash loan, it’s good to realistically assess your options. It is good to check exactly what the monthly installment of the commitment is. For this purpose, we will certainly use a calculator available on the web. You have to be careful here. Online calculators often do not take into account the additional costs of loans such as insurance or margins. Additional fees significantly translate into an increase in the monthly installment.
What to watch out for – cash loan
However, there will also be borrowers for whom priority is time to receive money. Then the overriding factor that should be followed when choosing a loan is the time needed to complete the formalities. Many banks are able to grant a cash loan in a dozen or so minutes, some delay the decision for several days. The loan period will definitely be another important factor. The longer, the lower the monthly installment. However, we cannot expect a loan for more than 10 years with a cash loan. You can not expect too excessive offers. At most, banks will currently grant us a 220,000 cash loan. The lowest amount is 1000 dollars. When it comes to interest rates, the most attractive cash loan offer starts with an interest rate of 7%. We pay the most 29%. Credit, like any other financial product, is for people, but just take it wisely so as not to burden your home budget too much.